Betashares will expand its operations into the provision of superannuation products after entering into an agreement to purchase the super operations of Bendigo and Adelaide Bank.
The bank will sell its wholly owned subsidiary Bendigo Superannuation (BSPL), which is the trustee and issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension products, to Betashares in an acquisition that is scheduled to be completed in 2024.
BSPL currently has funds under administration of $1.4 billion and more than 19,000 members and its sale concludes a process where the bank decided Betashares had sufficient scale, expertise and commitment to customer service to best serve its superannuation fund members.
Bendigo and Adelaide Bank chief customer officer for consumer banking Richard Fennell said: “Following a review that considered the interests and needs of our members and the future investment required in the business, the bank has decided to proceed with the sale of BSPL in line with the bank’s strategic imperative of reducing complexity.
“Betashares was selected following a process that took into consideration several factors, including alignment with our own strong customer focus and the ability to enhance member outcomes.
“The bank believes this transaction is in the best interests of BSPL’s members and will deliver enhanced retirement outcomes for them over time.”
Betashares chief executive Alex Vynokur said the shift into superannuation was the first stage of a long-term strategy to expand the business into the broader financial services sector and was complementary to its exchange-traded fund (ETF) business.
“While ETFs will always remain the bedrock of our business, we are equally determined to bring our ethos of diversification, cost-effectiveness, investor education and engagement into the superannuation sector, and it is a natural next step in our growth strategy,” Vynokur said.
“We have been actively exploring entry strategies for some time and have a long-term plan to significantly invest in building our superannuation presence.
“While our immediate focus for this acquisition is a smooth transfer of ownership, we intend to invest further to extend the existing investment offering, as well as adding further financial education and member tools in order to position the fund for sustainable growth.
“These initiatives plus a focus on significantly growing the [super] fund’s scale are all aimed at delivering enhanced member outcomes over the longer term.”
The planned acquisition is subject to regulatory approvals and some of the bank’s employees will transfer to Betashares to ensure continuity of service and offering to super fund members.
